Newsletter 17th of February: Race for the Residual


17 February 2021

The potential for further SVOD growth is among 60+, according to Mediavision’s analysis. After yet another year of strong growth in 2020, the question in the Nordics is: how to keep momentum in 2021, with fewer households left to convert? Actors must broaden their perspective – likely towards the older households.

As Mediavision recently reported, the pandemic helped to push SVOD penetration considerably during 2020. The average Nordic household penetration is close to 60%, or more than 6 million households that pay for at least one subscription.

The flip side of the coin: Fewer households remain to convert, and competition is heavy. The largest potential is among older households where transformation from broadcast to online started later and at a slower pace. On the other hand, viewing as a total is very high in age groups older than 60. During the pandemic, we have also seen how this group has had the largest (absolute) increase in traditional TV viewing as well as in online viewing (relative).

Compared to the overall population, households 60+ have so far been less prone to sign up for streaming services and they also hold fewer services (lower stacking factor). Mediavision’s belief is that SVOD actors – local as well as global – now need to seize the opportunity, tuning their offerings to this large consumer segment (that have both cash and hours to spend). To continue growing, there are two ways ahead: More households or more stacking (ideally, both).

Already last year, we saw Netflix targeting more traditional consumer behaviour by testing a scheduled feature called Direct. This was partly to meet the stronger fondness of linear TV among older audiences. The trial was done in France, with results yet to be revealed.

As the market matures, we know for sure that customer acquisition will become both more difficult and more expensive. Mediavision follows the development closely.

Industry News

TV 2 DK Increases Focus on Fiction

As part of TV2 Denmark’s newly publicized “Strategy 2025”, the company will increase its budget for fiction by +20%. Further, the focus will be adjusted to producing longer series, typically in seasons of 6×40 minutes, instead of shorter formats.

TikTok Official UEFA EURO 2020 Sponsor

As the first ever digital entertainment platform, TikTok will become an official UEFA EURO 2020 sponsor. The sponsorship entails the launch of AR effects, Hashtag Challenges, TikTok LIVEs and Sounds, as well as an official TikTok account for the tournament.

Disney+ to Surpass Netflix in 2026

New figures from Digital TV Research predicts that Disney+ will surpass Netflix 2026, with a global total of 294 million subscribers compared to Netflix’s 286 million. Disney recently reported that the service will hold 94,9 million subscribers by the end of Q1 2021.

10 European Projects Set for Disney+ & Star

Ahead of the launch of Star on Disney+ on the 23rd of February, the streamer has announced 10 European projects to be streamed on the service. Further, Disney has appointed two VPs of original productions in Spain and Germany respectively.

…and Will Produce Local Danish Content?

In an interview with Danish Politiken, Disney’s Nordic manager Hans van Rijn said that the company will also focus on local own productions of film and TV series for Disney+ and that they are in the process of exploring the Danish production environment right now.

Giggelbug in Deal with Nickelodeon

Following a deal with Disney, Finnish Gigglebug Entertainment has entered into a partnership with Nickelodeon. The agreement covers development, production and distribution of a new animated series in 120 countries.

TV 2 Sumo Relaunches as TV 2 Play

Norwegian TV 2 will relaunch its streaming service TV2 Sumo as TV2 Play before summer this year. This is one of several major changes announced by TV 2 earlier this year.

Storytel Releases Exclusive Original ”Glaciär”

Camilla Läckberg and Alexander Karim are the authors behind “Glaciär” which will be available for audio streaming exclusively on Storytel from 15th of June. The story will be produced in 14 different languages. It also be produced as a motion picture by NENT.

Mediavision in the News

Disney höjer priset – jagar Netflix

Från 0 till 95 miljoner kunder på drygt ett år. Nu ska Disney plus på allvar jaga Netflix i Sverige. Samtidigt lurar nya konkurrenter i bakgrunden.

Fler överger tryckta medier än digitala

Benägenheten att säga upp sitt abonnemang var högre för tryckta medier än för digitala under det fjärde kvartalet i fjol, enligt analysföretaget Mediavisions medieanalys för perioden. Det är tvärt emot hur det brukar se ut.

Tidningarna möter en helt annan konkurrens

Färska siffror från Mediavision visar att den potentiella churnen för digitalt är betydligt mindre än för print. Marie Nilsson, vd på Mediavision konstaterar att de digitala prenumerationerna ökar och är på tillväxt.

Netflix meets its match in Nordic minnow Nent

Propelled by the pandemic, the number of subscribers to internet video services in western Europe last year overtook pay-TV customers for the first time. Yet European media companies are not celebrating this milestone.

Streaming records for Sweden

According to Mediavision, the covid-19 pandemic has had “substantial effects” on the state of the streaming market in the Nordic country and that it has “accelerated the digital transformation.”

Swedish streaming market records 2020 record

Viewing to Swedish streaming services scaled new heights in 2020, according to the Stockholm-based Mediavision consultancy.

Swedish VoD penetration reaches 70% in Q4, up 10 percentage points year on year

Use of streaming services in Sweden increased substantially in 2020, despite a slowdown in growth in the first quarter, according to consultancy Mediavision.

Netflix nådde en ny milstolpe med 200 miljoner abonnenter

Kombinera hitserier som The Queen’s Gambit och Tiger King med ett år av självisolering, så får du ett vinnande koncept. Netflix publicerade i veckan sina siffror för det fjärde kvartalet och kunde rapportera att de nått en ny milstolpe.

Rejäl tillväxt på den svenska streaming-marknaden under pandemiåret

Streamingtjänsterna för video växte rejält i Sverige i fjol – både i betalande kunder och antalet tittare. Det visar Mediavisions analys av 2020.

Nordic monthly media spending reaches EUR 70 in autumn, little changed from before pandemic hit

The Covid-19 pandemic has not reduced Nordic consumers’ media spending so far, according to Swedish consultancy Mediavision.

Spotifys stora skifte: ”Behövde en ny story”

Spotify har hittills lagt över 8 miljarder kronor på att bli världsledande på poddar i bolagets största strategibyte sedan starten. Varför vill den svenska tech-jätten få dig att lyssna på annat än musik?

Nordic consumer spend unabated by pandemic

The Covid-19 pandemic has failed to alter the spending habits of the Nordic consumer. Stockholm-based Mediavision reports the average household in Denmark, Finland, Norway and Sweden spent approximately €70 per month on media during fall of 2020…

Nordiska medieutgifter stabila trots pandemi

Coronapandemin har inte påverkat de nordiska konsumenternas vilja att betala för media. Det genomsnittliga hushållet har lagt cirka 70 euro per månad, motsvarande 710 kronor, på media under hösten 2020 vilket är i stort sett oförändrat jämfört med fjolårsperioden.

Nordiska medieutgifter stabila trots pandemi

Coronapandemin har inte påverkat de nordiska konsumenternas vilja att betala för media. Det genomsnittliga hushållet har lagt cirka 70 euro per månad, motsvarande 710 kronor, på media under hösten 2020 vilket är i stort sett oförändrat jämfört med fjolårsperioden.